If you are planning to grow your company, now is the time to start exploring export opportunities in the European Union (EU). Recently the European Parliament gave its seal of approval to the Canada-EU Comprehensive Economic and Trade Agreement (CETA). As Canada’s second-largest trading partner, the EU offers immense openings to Canadian companies.
From the current 25 percent, 98 percent of EU tariff lines will be duty-free for Canadian goods once CETA enters into force, “including those on key British Columbia exports such as forest products, metals and minerals, and manufactured goods.”
What does it mean for the Canadian exporter?
Market Access: Canadian exporters will have access to a large market as the EU is the world’s second-biggest economy. With the reduction in tariff lines, they will have a competitive advantage over exporters from other countries.
Faster Movement of Goods: The movement of goods will be faster because of a reduction in processing times and procedures at the border. A unique feature of CETA is the “Protocol on Conformity Assessment” which will help Canadian exporters in some industries to get their products certified as per EU standards in Canada. This will greatly reduce delays in the movement of goods.
Benefits for Service Exporters: Do you provide management, financial or ICT services? CETA could offer great opportunities for your business growth. “The EU is the largest importer of services in the world. In 2015 alone, the EU imported $936 billion in services. It imported $16.5 billion from Canada.”
Access to contracts: Canadian exporters will have access to procurement opportunities. They can bid on contracts by several entities including public utilities, urban transit and railways in the EU.
Labour mobility: CETA will make it easier for skilled professionals to work in the EU. The temporary-entry provisions will help skilled professionals and intra-company transferees among others. It will also bring more certainty and security to Canadian businesses opening branches in the EU.
Before you start exporting to the EU, ask yourself:
- What is your market entry strategy? Are you going to work with an agent or a distributor? Who is your contact/partner in the local market?
- What primary product or service are you planning to sell?
- What is your timeline?
- Who are the key people in your organization who will lead the EU export venture?
If you’re ready to export, a Women’s Enterprise Centre business loan could provide the funding you need to expand into new markets. Learn more
Watch this video to learn more about How CETA will help Canadian businesses. https://youtu.be/XdpL-FtPZ6A